Morning Brief: Buffett, Dimon slam quarterly profit forecasts

What to watch today

The June rally continues. Stocks finished higher across the board on Wednesday with the Dow adding 346 points, or 1.4%, to pace gains among the major indexes. The S&P 500 and the Nasdaq were also higher, however, as the benchmark S&P 500 rose 0.86%, or 23 points, and the Nasdaq added 0.67%, or 51 points. After just four trading days in June, each of the major indexes are up more than 2% for the month.

On Thursday, the economics and earnings calendars are fairly quiet, as they’ve been for most of the week, with the weekly report on initial jobless claims, as well as the Fed’s latest report on household net worth, highlights on the economics side.

And on the earnings calendar, notable reports out Thursday should include results from J.M. Smucker (SJM), Vail Resorts (MTN), and Broadcom (AVGO).

Top news

REUTERS/Rick Wilking/Mike Blake/Files

Buffett, Dimon say quarterly profit forecasts harming economy: Billionaire investor Warren Buffett and JPMorgan Chase (JPM) Chief Executive Jamie Dimon voiced concerns that the financial markets’ focus on short-term goals is hurting the economy and urged companies to move away from providing quarterly earnings guidance, according to the Wall Street Journal. The pressure to meet short-term estimates has contributed to a fall in the number of U.S. public companies, wrote Buffett, chairman of Berkshire Hathaway Inc (BRKA), and Dimon in an article on Wednesday. [WSJ]

Kudlow on Trump’s trade disputes with G7: Donald Trump’s top economic adviser, Larry Kudlow, called trade tensions shadowing the G-7 conference beginning Friday “a family quarrel” and said Trump will meet one-on-one with Canadian Prime Minister Justin Trudeau and French President Emmanuel Macron at the summit. Trump is expected to attend the Group of Seven summit on Friday and Saturday with the leaders of the world’s largest economies before flying to Singapore for a historic meeting with North Korean leader Kim Jong Un on June 12. [Bloomberg]

Icahn buys small stake in drugmaker Allergan: Bllionaire investor Carl Icahn has acquired a small stake in Allergan Plc (AGN) at a time when the drugmaker is under pressure from other activist shareholders, people familiar with the matter said on Wednesday. Icahn’s intentions are not clear, though he has been a longtime supporter of Allergan Chief Executive Brent Saunders. [Reuters]

Tech company shareholder meetings turn testy: Usually placid Silicon Valley shareholder meetings have become targets for protesters this year, the latest example of a backlash against the technology industry’s growing power. [Bloomberg]

Protestors rally against Environmental Protection Agency (EPA) Administrator Scott Pruitt outside the federal office building that houses the New York City office of the EPA, June 6, 2018. Pruitt is under fire again this week after emails showed he asked an EPA staff member to contact Chick-fil-A for potential business opportunities for his wife. Federal ethics rules prohibit government employees from using their positions for private gain and prohibit supervisors from directing subordinates to carry out personal errands. Earlier in the week it was also disclosed that Pruitt asked an aide to inquire with the Trump International Hotel about purchasing a used mattress. (Photo by Drew Angerer/Getty Images)